Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

Oil Down, Ukraine and Russia Resume Talks, China Demand Fears Grow

Commodities Mar 29, 2022 12:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
-1.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Gina Lee

Investing.com – Oil was down on Tuesday morning in Asia, continuing the previous day’s downward trend as Ukraine and Russia look to continue peace talks. Fears that a COVID-19 lockdown in Shanghai, China could impact fuel demand also contributed to the losses.

Brent oil futures dropped 1.13% to $108.25 by 12:25 AM ET (4:25 AM GMT) and WTI futures fell 1.12% to $104.77. Brent and WTI contracts lost around 7% on Monday.

Ukraine and Russia will resume peace talks in Turkey later in the day, the first in over two weeks since Russia invaded Ukraine on Feb. 24.

"Oil prices are under pressure again on expectations for a peace talk between Ukraine and Russia, which could lead to an easing of sanctions or avoidance on Russian oil by the West," Nissan Securities general manager of research Hiroyuki Kikukawa told Reuters.

"A successful ceasefire could also raise the prospect of reviving an Iranian nuclear deal," he added.

Fuel demand in China, the world’s largest oil importer, also remains a concern as the city of Shanghai remains under a two-stage, nine-day lockdown to curb rising numbers of COVID1-9 cases.

"Selling pressure grew on concerns that China may impose more restrictions in other places to contain the pandemic and fuel demand may be reduced further," NLI Research Institute senior economist Tsuyoshi Ueno told Reuters.

"Increased market volatility has made it difficult for long-term investors to participate, as short-term investors tend to take profits or cut losses more quickly than before," he added.

The Organization of the Petroleum Exporting Countries and allies (OPEC+) will also meet on Thursday, where it will likely stick to plans for a modest increase in oil output in May 2022, several sources close to the group told Reuters. This is despite the surging prices due to the war in Ukraine and calls from the U.S. and other consumers to increase supply.

Global demand has risen back to pre-COVID-19 levels, but the market remains tight as OPEC+ has been slow to restore supply cuts enacted at the beginning of the pandemic in 2020. U.S. oil exports have climbed after Russia's invasion of Ukraine, and barrels of domestic oil that would typically go to the Cushing, Oklahoma, storage hub are instead being exported via the Gulf Coast, according to traders.

Investors also await U.S. crude oil supply data from the American Petroleum Institute, due later in the day.

Oil Down, Ukraine and Russia Resume Talks, China Demand Fears Grow
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Shep De
Shep De Mar 29, 2022 3:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How in the world does Ukraine believe a word Russia says after destroying their country infrastructure, just leveling their homes and apartment buildings, Mariopol is a Third World city. Putin even says he doesn't consider Ukrainians worth being here, his word is "exist." Toughen the sanctions once these talks fail and before Russi goes straight into Kyiv to topple govt, in a most brutal way. Oil blood money stop NOW, Europe. Thats the only sanction that'll actually do anything to stop Putin Please 🙏
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email